Generali Confident to Acquire Additional Stake in its Indian JV

Generali is confident that it will complete the acquisition of a larger stake in India's joint venture Future Generali Insurance Company after an Indian court paved the way for trading last week, Philippe Donnet, CEO Said.

Italy's largest insurance company agreed in January to buy a 25% stake in Future Generali India Insurance for €145 million ($ 159.37 million) from its debt-bearing Future Group. The Italian group received a 74% stake ownership in the joint venture.

The deal was put on hold by a Mumbai city court after a legal challenge by some bondholders of Future Group companies that have defaulted. Generali agreed to buy a 25% stake in Future Generali India Insurance. 

IDBI Trusteeship, a group of bondholders, has the right to oblige Future Enterprises not to dilute its stake in Future Generali, sources said. However, an Indian court cleared the path for sale last week, setting aside the order of the city court. 

The CEO Philippe Donnet has said that the completion of the acquisition is subject to regulatory approvals and is still on the table. He also said that he is confident that it’s going to happen.